Specifically it includes the internationally agreed standard for exchange of information whereby tax authorities may obtain more power to use and exchange taxpayer information.
The information can apply to axes of every kind of description imposed in the countries, and it states that no tax authority can refuse to provide information just because it does not require the information for its own purposes, or because the information is held by a different institution.
The protocol will introduce the amendment, and it will come into effect after both countries ratify, revise the establishment, interest, dividends and capital gains articles of the old DTA.
The new procedure also calls for a reduction in the old agreement of 10% withholding tax on interest charged by Vietnam if any DTA is completed with any other country that includes a rate that is lower than theirs, and for a reduction from 15% to 10% in the tax payable on royalties other than those in respect to payments received for the use of any patent for industrial, commercial or scientific equipment, in which case the rate will remain at 5%.
When the meeting was going on, both leaders said that they wanted to promote regional economic growth, to cooperate closely to realize the goal of creating an Association of Southeast Asian nations Community by 2015, and to also work closely to advancing regional initiatives such s the Trans-Pacific Partnership.
Furthermore, both of the leaders saw the signing of a Memorandum of Understanding on Financial Cooperation, which will improve exchanges and share mutual experiences on public financial management in the areas of property management, tax administration and policy.
